The 10-second takeaway
For the quarter ended March 31 (Q1), Natus Medical beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Margins expanded across the board.
Natus Medical booked revenue of $85.8 million. The two analysts polled by S&P Capital IQ expected sales of $84.7 million on the same basis. GAAP reported sales were 44% higher than the prior-year quarter's $59.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.15. The four earnings estimates compiled by S&P Capital IQ averaged $0.11 per share. Non-GAAP EPS of $0.15 for Q1 were 114% higher than the prior-year quarter's $0.07 per share. GAAP EPS of $0.11 for Q1 were much higher than the prior-year quarter's $0.01 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.4%, 120 basis points better than the prior-year quarter. Operating margin was 5.7%, 420 basis points better than the prior-year quarter. Net margin was 4.0%, 340 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $88.9 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $364.4 million. The average EPS estimate is $0.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,228 members out of 1,257 rating the stock outperform, and 29 members rating it underperform. Among 331 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 321 give Natus Medical a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Natus Medical is hold, with an average price target of $16.00.
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